ARKANSAS
REAL ESTATE COMMISSION
NEWSLETTER
Executive Director Comments
By Andrea S. Alford, Executive Director
Greetings from the Arkansas Real Estate Commission. I hope this
newsletter nds you and yours safe and well. There are many things I could
write about in this, my rst ocial newsletter article as AREC Executive Direc-
tor. For instance, I could tell you about our amazing sta and how diligently
they’ve worked to serve licensees and consumers, all while adapting to the
ever-changing landscape of 2020 and 2021. Or I could share a smidge of the
positive feedback we’ve received from educators and licensees on the suc-
cesses they have experienced in using AMI for CE courses. Perhaps I could
even add a statistics table that will show the rise in new applicants and total
licensee numbers, the highest we’ve seen in my 12 years at the Commission.
For now, though, I believe I’ll step aside and let you get to the really good stu.
You’re going to meet our new Commissioner, Suzett Sparks. Then
you’ll get to hear Chairman Tony Moore’s thoughts on multiple oer situa-
tions and Tim Grooms’ hot take on escalation clauses. Next you can read
all about the Formal Hearing decisions made by the Commission since late
2019. We’ve packed quite a bit of educational material into this edition of the
newsletter, and I hope it will be of use to you in serving your clients, custom-
ers, and fellow licensees.
Asa Hutchinson
Governor
Daryl E. Bassett
Secretary
April 2021
Arkansas Real Estate
Commission
612 South Summit Street
Little Rock, AR 72201-4701
Phone: 501-683-8010
Fax: 501-683-8020
Commissioners
Tony Moore, Chair
Russellville
Bob Walker, Vice-Chair
Jacksonville
Linda Prunty
Jonesboro
Jessica “Dee” Holcomb
Pine Bluff
Suzett Sparks
Rogers
Staff
Andrea S. Alford
Executive Director
Melissa L. Goff
Deputy Director
Heather Garrett
AREC Supervisor
www.arec.arkansas.gov
Please Welcome our Newly Appointed Commissioner
Suzett Sparks, Managing Broker of Lindsey & Associates in Rogers,
is a 27-year real estate industry professional. She is a servant leader, known
for successfully leading agents through their commercial and residential real
estate transactions for over 11 years. Ms. Sparks
has her broker’s license in Arkansas, Missouri,
and Oklahoma. She serves on the Arkansas RE-
ALTORS® Association Board of Directors and
served as president of the Northwest Arkansas
Board of REALTORS® in 2017. In 2017, Ms.
Sparks was honored with the local board REAL-
TOR® of the Year award and was named one
of the 2020 Women in Business Honorees. Ms.
Sparks started the formal relocation department
for Lindsey & Associates in 2005 and maintains
relocation designations including Certied Re-
location Professional and Global Mobility Pro-
fessional. She also holds the C2EX designation
through NAR. She is a native to Rogers and has been married to her husband,
Rick, for 31 years. She is very proud of her wonderful daughters and sons-in-
law and is a new “Grams” to William James.
Page 2
Over the past few years, the number of complaints received by the Commission has dramati-
cally increased in one specic area: buyers are routinely complaining their oer was not presented.
Commission Rule 10.12 requires that all oers be presented “promptly.” One impact COVID-19 is hav-
ing on our industry at present is a further limiting of inventory here in Arkansas. You and I are aware of
the current market conditions – we deal with them every day. But our clients aren’t usually in the habit
of studying up on Arkansas’ current real estate trends. Accordingly, it falls to us as their agents to rep-
resent our clients well in light of and despite whatever market conditions may exist. Listing and selling
agents alike owe their clients – and each other – this responsibility.
Let’s start with listing agents. First of all, don’t be lazy. It can be tempting to get in the habit of
not providing a written response to every oering party; after all, we’re busy people, right? Let me
ask you this. Are you too busy to answer a complaint led with the Commission by a buyer who is
convinced you didn’t present their oer? Any agent who has had to answer a complaint can tell you it
takes much longer to write that answer than it would to provide a buyer with a written response to their
oer. Beyond the question of time, buyers and their agents deserve to know their oer was presented,
and you owe it to all parties, including your sellers, to be able to prove this with signatures, dates and
times. Second of all, don’t be greedy and don’t play
games. We all know there can only be one winner in
a multiple oer situation. What we sometimes fail to
properly consider is that multiple oers minus one
winner equals multiple letdowns. Think about this for
just a minute. Place yourself in Buyer #4’s position.
They don’t know how the real estate world operates;
furthermore, they don’t care. They have just lost their
dream house. This makes them feel hurt, angry, frustrated and a thousand other things, with disap-
pointment reigning supreme. Sure, we know they didn’t get the house because another buyer’s oer
was more acceptable to the seller, but do you think a buyer who just submitted their personal best oer
is more likely to believe the problem was with their oer or with the agent responsible for presenting
that oer? You’d better believe it’s the latter, and if you fail to provide buyers a written response, you’ve
placed a target of your back with “aim your disappointment here” written all over it.
Spend some time really focusing on the position buyers are in, then act accordingly. Present
every oer with the same enthusiasm and the same breakdown on it. Show the sellers every oer and
present them in the order received. Even though the exact procedure isn’t a requirement, many buyers
“It falls to us as their agents to
represent our clients well in light
of and despite whatever market
conditions may exist.”
Contemplations of a Commissioner: On the Presentation of Oers
by Chairman Tony Moore
In the article below, Commission Chairman Moore shares his candid insights on presenting oers in multiple of-
fer situations. Please bear in mind that this article contains advice that is rooted in best practice and oered by a member
of the Commission who has many years of industry experience. To review the Commission’s Rules on agency representa-
tion and the presentation of oers, go to www.arec.arkansas.gov and click “Commission Rules” on the home page. We
also encourage licensees to speak with their Principal Brokers and contact the AREC any time they have questions or
wish to seek clarication on complying with AREC License Law and Commission Rules.
believe that it should be. Since you’re presenting all oers anyway, what can it hurt to follow that pat-
tern? It can’t! It can only serve to reassure buyers their oer was presented fairly, and it may even keep
all of us held in a little better light with the public.
Third, consider inviting the selling agents in on the presentation of oers. This may seem coun-
terintuitive but ponder it a moment. Why not have the buyers’ agent attend the presentation so they can
witness the process rsthand and receive a prompt response to carry back to their buyers? Buyers’
agents who attend these presentations should keep a few things in mind. First, the seller and listing
agent set the time and location of the presentation. Second, you are the guest. The listing agent is in
charge, and you may or may not be allowed to partici-
pate in the listing agents’ presentation. Ask the listing
agent about this ahead of time. If you are allowed to
play a role, accept it graciously and by all means stay
in your lane. Answer the questions asked of you and
take your leave. You may not stay unless you are in-
vited to. Listing agents should be sure to notify selling
agents of the sellers’ conclusions in a timely manner. Don’t wait – do it now. After all, anxious buyers
don’t get less anxious over time, they only get more anxious.
My advice to buyers’ agents is simple: always write your oer. More on this later, but for now,
hear me say: put the oer in writing. Next, write every oer like you have competition. Now is the time
for writing the best oer. No one owes you a counteroer. Next, skip the fancy footwork of trying to
put the seller and listing agent on a short leash and
seeing if you can manipulate them with a 24-hour
expiration. When the seller rejects your buyer’s oer
outright, who will have caused the problem for your
buyer in that scenario? I’ll give you a hint: you did.
It’s like I always say: if you don’t start something,
there won’t be something. How do you like it when
you get a 24-hour response time on an oer written Friday night at 8 pm? You don’t? Then don’t write
one that way. Write clean oers. Make them straightforward, direct and clear.
Even though we’ve seen an increase in complaints over failure to present oers, there are many
more frustrated buyers out there who never le a complaint with the Commission. These buyers still
feel their agents failed to represent them well, but instead of telling the Commission, they tell their
friends and family. They post it on Facebook. Their Facebook friends share those posts. And on and
on it goes, with our industry taking it on the chin as all agents are viewed in the same dim light as the
handful who can’t be bothered to comply with the rules, much less aim for excellence and professional-
ism. Together, I believe we can change that. I hope this advice helps move us in that direction. Let us
know at the Commission if this is helpful or if you have questions in the future.
Page 3
“Anxious buyers don’t get less
anxious over time, they only
get more anxious.”
“Write clean offers. Make
them straightforward, direct
and clear.”
(continued from page 2)
Page 4
New Rules Eective November 1, 2020
The Commission promulgated Rules 4.5 and 4.6 in compliance with Acts 820 and 990 of
2019, respectively. The new rules became eective November 1, 2020.
Act 820 of 2019 requires occupational licensing agencies to provide for automatic licen-
sure for active duty service members, returning military veterans, and their spouses to engage in
their chosen professions. The purpose of new rule 4.5 is to grant automatic licensure for a real
estate broker or salesperson license for active duty service members, returning military veterans
and their spouses when they hold an active license in another jurisdiction.
Act 990 of 2019 requires licensing agencies to promulgate rules for applicants for licensure
who have criminal background records. The purpose of new rule 4.6 is to allow individuals with
criminal background records to le a petition for a pre-licensure determination of whether the
individual’s criminal record will disqualify the individual from licensure as a real estate broker or
salesperson and whether a waiver may be obtained.
Tim Grooms Weighs In on Escalation Clauses
AREC continues to receive questions regarding the use of escalation clauses in real estate
contracts. While it is understandable that buyers and agents are looking for every possible advan-
tage in such a competitive market, we would be remiss not to issue guidance and caution in this
area. First, the Commission very strongly encourages licensees to consult an attorney prior to add-
ing any language to a contract, including, but not limited to, an escalation clause.
We reached out to Tim Grooms and asked him to oer his thoughts as well. Here’s what Tim
has to say:
InArkansas,abasicelementofabindingandenforceablecontractisadenite“meet-
ingoftheminds”onallmaterialterms.Clearly,priceisa(orperhaps“the”)materialterm
of a contract. When a contract contains a provision allowing for a competing and later of-
fer to change a material term, contract enforceability becomes an issue. Going outside the
“fourcorners”ofacontracthasbeenunderstoodbyArkansaslawyersandcourtsasan
impediment to contractual enforceability. I maintain: when a property is highly marketable
with multiple potential buyers, a better practice is to make it clear that all potential buy-
ersshouldsubmitthebestnancialoerwithinadenedtimeframeandallowtheseller
toacceptorcountertheselectedoer.Ofcourse,theoerselectionshouldbebasedon
contractualtermsandsellers(andtheirrealestatelicenseeagent)shouldcloselyfollowall
state and federal laws outlawing discrimination and protecting fair housing practices.
AREC remains committed to helping licensees comply with law and rules while representing
their clients’ best interests. While the use of escalation clauses in contracts is not a new issue, it is
one that has risen in prominence given current market conditions. As such, we are closely monitor-
ing new developments in this area and will communicate any updates for licensees via educators,
our website and future newsletters. In the meantime, if you have any questions regarding escala-
tion clauses, please contact the AREC Investigations Department at 501.683.8010.
Page 5
Meet AREC’s Newest Deputy Executive Director
AREC Sta Directory
Melissa Go was recently appointed Deputy Executive Director to the Arkansas Real Estate
Commission. Ms. Go has served the state of Arkansas for over
25 years and brings experience in many facets of state govern-
ment. Ms. Go previously served as the Manager of Student
Financial Aid Programs for the Arkansas Department of Higher
Education. She has also served as the Director of Admissions
and Institutional Research at the University of Central Arkansas
and as the Chief Fiscal Ocer at the Department of Arkansas
Heritage. Most recently, Ms. Go served as the Oce Admin-
istrator for the Capitol Zoning District Commission. She holds
a Bachelor of Business Administration degree in Management
and Finance from the University of Oklahoma and tells us that
she is an obnoxious Sooner fan, but we’re going to let that go.
She and her husband, Kent, live in Little Rock and have three
daughters, Courtney, Whitney, and Holli.
We are excited about our sta additions/promotions over the past year. For your convenience, our
updated sta directory is shown below.
Administration Title E-Mail Address
Melissa L. Go Deputy Executive Director melissa.go@arkansas.gov
Heather Garrett AREC Supervisor heather[email protected]
Investigations
Education
Licensing
Linda Alkire Computer Support Technician [email protected]
Page 6
FORMAL HEARING DECISIONS
Thee following information is extracted from Findings of Fact, Conclusions of Law
and Order, and Consent Orders issued by the Commission from August 2019 through
December 2020. Formal Hearing Decisions still subject to appeal are not listed.
Respondent: Lisa Stassi, Unlicensed, Formal Hearing #3392
Violations: Arkansas Code Annotated §17-42-105(a)(1) and §17-42-109.
Sanctions: The ordered a penalty of $5,000.00 assessed to Respondent Lisa Stassi. Additionally, Respon-
dent Stassi was ordered to pay estimated Commission hearing costs.
Summary: Respondent Stassi was not licensed as a real estate agent in Arkansas when she entered into
a contract representing herself as the buyer of the Complainant’s property. Paragraph 13 of the contract, titled
MARKETING, stated: "Upon execution of this Agreement, Buyer will have an equitable interest in this prop-
erty and therefore will have the right to market that equitable interest in any way Buyer deems t... Buyer
may also assign its rights to this agreement." The Complainant did not knowingly agree for the Respondent
to collect a fee for the marketing activities listed in the contract. At Respondent's request, the Complain-
ant signed a Memorandum of Agreement which placed a lien on the Complainant’s property until fees were
paid to an entity associated with the Respondent. Respondent did not purchase the property and the Com-
plainant accepted an oer brought by a licensed real estate broker. The lien placed by Respondent Stassi
delayed closing for the Complainant and their buyer but was ultimately removed by the Respondent. Re-
spondent Stassi also attempted to collect a commission from the Complainant when the property was sold.
At an initial hearing, the Arkansas Real Estate Commission ruled Respondent Stassi engaged in unlicensed real
estate activity. The hearing was appealed and remanded back to the Arkansas Real Estate Commission for a
ruling on the question of whether or not Respondent Stassi qualied for the owner exemption under license law.
At the Remand Hearing, the Commission ruled Respondent Stassi’s equitable interest in the property did not
qualify her for the owner exemption for licensure under the Statute as it existed in 2015, when the action oc-
curred.
Respondent: Wesley N Johnston, Principal Broker, Central Arkansas Realty Team, Conway, Arkansas, Formal
Hearing # 3641
Violations: Commission Rules 8.5(a), 10.7(b)(1) & (3), 10.10(a) and Arkansas Code Annotated §17-42-311(a)
(2),(4), (7), and (11).
Sanctions: The Arkansas Real Estate Commission ordered Respondent Johnston to pay a penalty of $5,000
and Respondent Johnston must appear before the Commission prior to any activation of his license.
Summary: Respondent Broker Johnston, acting as a dual agent, failed to ensure the agreement to the parties
was reduced to writing by allowing a Delayed Occupancy Addendum to be altered after the Complainant Buy-
ers signed the document. The alterations to the Addendum removed all payments from the Seller regarding the
delayed occupancy. Respondent Broker Johnston failed to maintain complete records of real estate business
handled by the rm. Respondent Broker Johnston also made a substantial misrepresentation to the Arkansas
Real Estate Commission regarding business conducted by the rm.
FORMAL HEARING DECISIONS
Page 7
Tee following information is extracted from Findings of Fact, Conclusions of Law
and Order, and Consent Orders issued by the Commission from August 2019 through
December 2020. Formal Hearing Decisions still subject to appeal are not listed.
Respondents: Johnny Ball, Principal Broker and Ezekiel Langston Barrett, Salesperson, Whitetail Properties
Real Estate, LLC, Little Rock, Arkansas, Formal Hearing #3635 - Consent Order
Violations: Commission Rules 8.5(a), 10.4(b), 10.4 (d), 10.10(a), and Arkansas Code Annotated §17-42-
311(a)(2).
Sanctions: The Arkansas Real Estate Commission ordered Respondent Ball to pay $5,500 in penalties and
complete the 30-hour broker post-license course within six months of date of the order.
The Arkansas Real Estate Commission Ordered Respondent Barrett to pay $4,500 in penalties and complete
the 18-hour salesperson post-license course within six months of the date of the order.
The Arkansas Estate Commission ordered that Respondents Ball and Barrett jointly and severally pay the Com-
plainant restitution in the amount of $6,000 within thirty days of the date of the order. Upon proof of payment of
restitution to the Complainant the Commission would reduce the disciplinary nes against Respondents Barrett
and Ball by the respective restitution amounts paid by each Respondent.
Summary: Respondents acted as dual agents in the sale of the subject property which included acreage
and a residence. The Complainant Buyer lived out of state and relied upon information provided by
Respondent Barrett regarding the property. Respondent Barrett failed to properly reduce the agreements of
parties to writing regarding requested repairs. Respondent Barrett further communicated to the Complainant
Buyer that request-ed repairs were made without determining that the repairs were made to the Complainant
Buyer’s satisfaction. Upon moving to the property, Complainant Buyer discovered issues with the property.
The Complainant Buyer decided to sell the property and accepted an offer. Following an inspection of the
property it was discovered that repairs the Complainant was told were completed had not in fact been
completed. The Respondent Broker resided in Little Rock, the Respondent Salesperson resided in Harrison,
and the subject property was located in Leslie.
Respondent: Karen Dill, Principal Broker, Dill Real Estate Company, Little Rock, Arkansas, Formal Hearing
# 3661
Violations: Commission Rule 8.5(a) and Arkansas Code Annotated §17-42-311(a)(2).
Sanctions: The Arkansas Real Estate Commission ordered Respondent Dill to pay a penalty in the amount
of $500 within six months of the date of the order and complete six hours of continuing education in Agency in
a course approved by the AREC Executive Director.
Summary: Respondent Dill represented the Buyer in the purchase of a property. The property had mois-
ture issues and a mold inspection was ordered. The preliminary inspection report indicated elevated levels
of mold in the property, but the nal report could not be completed until after the scheduled closing date. The
Buyer decided to close on the property with the expectation of receiving the full mold report when it was com-
pleted. The Listing Broker delivered the mold report to Respondent Dill. Respondent Dill failed to provide the
mold report to the Buyer in a timely manner.
Page 8
Inside This Issue
New Commissioner Appt..............1
Multiple Oer Solutions..................2
Escalation Clauses........................4
New Rules 4.5 and 4.6...................4
New Deputy Director......................5
Sta Directory.................................5
Formal Hearing Decisions...........6
Arkansas Real Estate Commission
612 South Summit Street
Little Rock, AR 72201-4740
PRESORTED
US POSTAGE
PAID
PERMIT 75
LITTLE ROCK AR
2021 Commission Meeting Dates
This year’s remaining meeting dates are below. As of April 2021, in-person attendance at AREC
meetings remains limited to Commissioners, sta and hearing participants, with a livestream option
available to all other attendees. You can nd each month’s attendance details (i.e., Zoom webinar link
or details on attending in-person once we have lifted that restriction) along with the agenda in the Cal-
endar section of our website.
Monday and Tuesday, May 3-4 Monday, September 13
Monday and Tuesday, June 7-8 Monday and Tuesday, October 11-12
Monday and Tuesday, July 12-13 Monday and Tuesday, November 8-9
Monday and Tuesday, August 9-10 Monday and Tuesday, December 13-14
*Tuesday meetings are reserved as optional second days as needed. The Commission will announce whether each month’s
meeting will last one or two days by updating our website and the state’s public calendar prior to each meeting.
A Fond Farewell and Thank You
Most of you know that former Executive Director Gary Isom retired at the beginning of 2020, after
over 40 years of service to the state of Arkansas. Without a doubt, the Real Estate Commission would not be
where it is today without the leadership Gary provided along the way. We would like to congratulate Gary on
his retirement and wish him all the best in the future.
In related news, Doyle Yates recently completed his service as a Commissioner. Doyle served on the
Commission for 6 years, being rst appointed by Governor Hutchinson in 2015, then reappointed in 2018.
Doyle served two terms as Vice Chair and two terms as Chair. The Commissioners and sta are grateful for
Doyle’s service and leadership.
